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Re: Trying to understand taxes in retirement, correct me

the moneychimp calculator comes up with $760 tax due if you don't manually change exemptions from 0 to 2.
Taxcaster , I believe, does that automatically for jt returns.
by kaneohe
Tue Sep 16, 2014 9:12 pm
 
Forum: Investing - Theory, News & General
Topic: Trying to understand taxes in retirement, correct me
Replies: 11
Views: 992

Re: Trusts for grown kids

Piggybacking on this useful older thread to remind folks it is here. I found the quote below in a table from a Nolo article on intestate succession. The table didn't cover the exact example I was looking for: what happens if you die intestate in CA but have surviving children and siblings? (I have a...
by kaneohe
Fri Sep 12, 2014 10:39 am
 
Forum: Personal Finance (Not Investing)
Topic: Trusts for grown kids
Replies: 29
Views: 2752

Re: Low Income Investor (Tax Concerns)

This, from the wiki on timing of buying funds, may be useful so you don't pay unnecessary taxes
http://www.bogleheads.org/wiki/Timing_of_transactions_to_reduce_taxes
by kaneohe
Wed Sep 10, 2014 7:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: Low Income Investor (Tax Concerns)
Replies: 31
Views: 1835

Re: Low Income Investor (Tax Concerns)

I'm just worried about the theoretical scenario where I start investing a lot of money and end up having to pay taxes while I'm making so little. . Careful w/ your thought process tho................you pay taxes because you made income and you only pay a fraction of your income as taxes (fraction ...
by kaneohe
Wed Sep 10, 2014 6:17 pm
 
Forum: Investing - Help with Personal Investments
Topic: Low Income Investor (Tax Concerns)
Replies: 31
Views: 1835

Re: What if the institution doesn't accepts 529s?

from IRS: http://www.irs.gov/uac/529-Plans:-Questions-and-Answers Do they participate in this program? Q. What is an eligible educational institution? A. An eligible educational institution is generally any college, university, vocational school, or other postsecondary educational institution eligib...
by kaneohe
Wed Sep 10, 2014 1:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: What if the institution doesn't accepts 529s?
Replies: 11
Views: 1182

Re: Medicare Out of Pocket worry (unnecessarily?)

In my experience there is quite typically medical underwriting associated with switching from a medigap to a medicare advantage plan after date of initial enrollment (i.e., age 65). I know it's difficult to switch from medicare advantage to medigap with underwriting , but I was under the impression...
by kaneohe
Wed Sep 10, 2014 9:19 am
 
Forum: Personal Finance (Not Investing)
Topic: Medicare Out of Pocket worry (unnecessarily?)
Replies: 16
Views: 939

Re: CD penalty comparison, question

Yes, thanks, ogd and Kaneohe, I stand corrected on the tax issue related to the penalty. I agree that the penalty is a non-issue from a tax standpoint. However, the original conclusion remains that the original poster was correct in his calculations that showed it was advantageous to purchase the 5...
by kaneohe
Tue Sep 09, 2014 12:57 am
 
Forum: Investing - Help with Personal Investments
Topic: CD penalty comparison, question
Replies: 11
Views: 823

Re: Medicare Plan D

Then variable that you should consider is "WHAT IF you get really sick and your Doc prescribes a tier 3 4 or tier 5 drug what will the plan cover. You can plug in some of these expensive drugs and see what your coverage and maximum out of pocket costs would be. For example I am on Enbrel and w...
by kaneohe
Mon Sep 08, 2014 4:51 pm
 
Forum: Personal Finance (Not Investing)
Topic: Medicare Plan D
Replies: 5
Views: 484

Re: CD penalty comparison, question

2. I disagree with the earlier poster who stated that the tax deductibility of the penalty merely offsets the higher interest rate. I'd like to see more about that opinion, though. If you keep the CD for a year, you get e.g. 2.30% in dividends and pay taxes on them. The early withdrawal penalty mea...
by kaneohe
Sun Sep 07, 2014 8:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: CD penalty comparison, question
Replies: 11
Views: 823

Re: Missing Cost Basis Information for Joint Custodial Accou

So realistically I'm looking at paying 20%-30% capital gains tax on something that hasn't appreciated much at all. What is the basis for the last few words: something that hasn't appreciated much at all................and does that help you plan a path to get a good guess? Or is there really no bas...
by kaneohe
Sat Sep 06, 2014 7:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: Missing Cost Basis Information for Joint Custodial Account
Replies: 18
Views: 876

Re: Missing Cost Basis Information for Joint Custodial Accou

You don't say how old you are or what tax bracket you are in..........conceivably if you are in the 15% bracket, perhaps most or all of the 26K CG max gain (if basis is assumed 0) would be taxed at 0%. If you are a youngish 20 something, then the acquisition date could be narrowed to decades that mi...
by kaneohe
Sat Sep 06, 2014 4:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: Missing Cost Basis Information for Joint Custodial Account
Replies: 18
Views: 876

Re: Where can I go to get a signature guarantee or Medallion

Be sure to call your local branch to verify even if the tollfree folks tell you the branches do stuff. That tollfree advice is not as reliable as talking to the first line folks who actually are in the branch tho the branches can be iffy also. In my area Wells Fargo tells me they only do it for WF b...
by kaneohe
Fri Sep 05, 2014 8:08 pm
 
Forum: Personal Finance (Not Investing)
Topic: Where can I go to get a signature guarantee or Medallion sig
Replies: 21
Views: 1222

Re: POLL: What was the first stock you ever bought?

Douglas Aircraft in feb. of 1966 Me too........not sure of the exact date but within a yr or so. McDonnell Air and Douglas Air had proposed to merge under certain terms and Douglas Air was way undervalued based on the proposed exchange. Boldly(or ignorantly) bought a few shares of Douglas before th...
by kaneohe
Fri Sep 05, 2014 9:36 am
 
Forum: Investing - Theory, News & General
Topic: POLL: What was the first stock you ever bought?
Replies: 74
Views: 2743

Re: Missing Cost Basis Information for Joint Custodial Accou

This is just my opinion, but if you have made a reasonable effort to find the actual cost basis, and then get as much information as you can to support your best estimation, and you are not purposely being fraudulent, how can anyone else prove a different cost basis if you with the most information...
by kaneohe
Thu Sep 04, 2014 9:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: Missing Cost Basis Information for Joint Custodial Account
Replies: 18
Views: 876

Re: Missing Cost Basis Information for Joint Custodial Accou

I'm having a nightmare of a time getting cost basis information for investments that were originally in a joint custodial account with my mother. Looking for advice on how to proceed. Could you clarify what a joint custodial account means.........was this a UGMA/UTMA type account or simply a joint ...
by kaneohe
Thu Sep 04, 2014 8:59 pm
 
Forum: Investing - Help with Personal Investments
Topic: Missing Cost Basis Information for Joint Custodial Account
Replies: 18
Views: 876

Re: Roth Conversion From Rollover IRA

If you pay the tax bill from IRA funds, you will be subject to the early withdrawal penalty of 10% on those funds unless you are 59.5 y.o. since those funds aren't rolled over.
by kaneohe
Thu Sep 04, 2014 7:13 am
 
Forum: Investing - Help with Personal Investments
Topic: Roth Conversion From Rollover IRA
Replies: 3
Views: 396

Re: Estimated taxes / Vanguard information . . . HELP!

Might be too late for this yr but can you do the safe harbor of 100% (or 110% at higher AGI) of last yrs taxes paid in 4 equal payments?
That way, you don't care about "exact" estimates for this yr. Works best if income expected to be about the same or higher than last
yr.
by kaneohe
Wed Sep 03, 2014 10:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: Estimated taxes / Vanguard information . . . HELP!
Replies: 20
Views: 852

Re: Health Savings Account (HSA)

Do you have a choice of medical plans for wife/kid so that you can compare plan A vs HDHP (HSA eligible) plan B? If so , compare the costs for each........premiums + out of pocket costs (copay/coninsurance/deductibles) for each plan under best and worst case scenarios. Then decide which scenario you...
by kaneohe
Wed Sep 03, 2014 8:48 am
 
Forum: Personal Finance (Not Investing)
Topic: Health Savings Account (HSA)
Replies: 2
Views: 347

Re: Capital Gains Tax

If you have $36,000 of taxable income (not AGI) due to employment and $1200 of capital gains, then $1000 of he CG gets a free ride and $200 of it is taxed at 15%. If I'm wrong, someone will correct me, I'm sure... if the separation between 15/25% brackets is 36900 as OP mentions, then isn't it 900 ...
by kaneohe
Sun Aug 31, 2014 12:26 am
 
Forum: Personal Finance (Not Investing)
Topic: Capital Gains Tax
Replies: 3
Views: 518

Re: Trying to understand the 1040 Tax Table

That money taken from your IRA will be taxed at your marginal rate. Effective tax rate, while interesting, is useless for decision making. All decisions to recognize additional income or accelerate deductions are based on the marginal rate. Both of these quotes are assuming that the income or IRA w...
by kaneohe
Fri Aug 29, 2014 10:51 pm
 
Forum: Personal Finance (Not Investing)
Topic: Trying to understand the 1040 Tax Table
Replies: 36
Views: 2479

Re: Tax loss harvesting

Yes, there is a benefit of TLH, but it isn't as great as it seems at first. You've cashed out $250 in losses which you can put to work that was tied up in cost basis, but you've also downwardly adjusted your cost basis, so when you regain the $1000 down the road and you sell it, you'll have to pay ...
by kaneohe
Fri Aug 29, 2014 1:27 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tax loss harvesting
Replies: 32
Views: 1540

Re: Calculating MAGI for Medicare Part B.

Thanks to Mike and sscritic for correcting my response. ssc sent me a PM citing the same items that Mike did which I was not aware of because I only read the same publication that OP cited. For most the differences will not be critical but for some it might be very important. I sent ssa a message po...
by kaneohe
Thu Aug 28, 2014 12:32 pm
 
Forum: Personal Finance (Not Investing)
Topic: Calculating MAGI for Medicare Part B.
Replies: 5
Views: 270

Re: Tax loss harvesting

The market recovers and after those 30 yr your investment is again worth 90K. If you sell, you have 90K of gains and if still in the 25% bracket must pay 22.5K in taxes Your net benefits are the investment gains generated by your 22.5K in tax benefits over those 30 yrs.. The LT capital gains tax ra...
by kaneohe
Thu Aug 28, 2014 11:13 am
 
Forum: Investing - Help with Personal Investments
Topic: Tax loss harvesting
Replies: 32
Views: 1540

Re: Calculating MAGI for Medicare Part B.

Specifically for Medicare, how do I estimate my MAGI if I start with the Adjusted Gross Income on my 1040 tax form? I assume that the taxable portion of my social security is already in the Form 1040 AGI. Do I also add back the 15% that was not taxed? I assume that my tax-free municipal bond intere...
by kaneohe
Thu Aug 28, 2014 11:02 am
 
Forum: Personal Finance (Not Investing)
Topic: Calculating MAGI for Medicare Part B.
Replies: 5
Views: 270

Re: Chase savings account bonus deposit

Read the offer closely. I suspect you will have to keep the $15K in the account for six months in order to keep the bonus. . Reading the offer closely (and perhaps asking Chase to confirm) is a very good idea. For me, a year or so ago, there was no requirement to keep the 15K opening amount for any...
by kaneohe
Thu Aug 28, 2014 9:12 am
 
Forum: Personal Consumer Issues
Topic: Chase savings account bonus deposit
Replies: 22
Views: 1953

Re: Tax loss harvesting

If you have an ideal BH type portfolio of index funds that don't distribute LTCGs, then you are correct that you only get to use 3K of losses each yr. If you are in the 25% bracket, that's $750 in savings each yr which is not insignificant. If you harvest only during major downturns,that shouldn't b...
by kaneohe
Thu Aug 28, 2014 1:10 am
 
Forum: Investing - Help with Personal Investments
Topic: Tax loss harvesting
Replies: 32
Views: 1540

Re: Chase savings account bonus deposit

Read the offer closely. I suspect you will have to keep the $15K in the account for six months in order to keep the bonus. Or, maybe not. If OP and/or kaneohe is correct, one might be able to cycle the money in and out, many times over, with multiple accounts, keeping the minimum balance ($300) and...
by kaneohe
Thu Aug 28, 2014 12:49 am
 
Forum: Personal Consumer Issues
Topic: Chase savings account bonus deposit
Replies: 22
Views: 1953

Re: Chase savings account bonus deposit

I got the idea to open one for me and one for my wife and it wasn't my idea to do that. Possibly the bankers get rewarded on how many new accounts they open so it may be a win-win situation.
by kaneohe
Wed Aug 27, 2014 10:13 pm
 
Forum: Personal Consumer Issues
Topic: Chase savings account bonus deposit
Replies: 22
Views: 1953

Re: Pay taxes or high fees: should I sell underperforming Am

If you make charitable contributions, consider donating your long-term holdings to charity.........gets rid of your tax bill and high ER at the same time.
by kaneohe
Wed Aug 27, 2014 9:54 am
 
Forum: Investing - Help with Personal Investments
Topic: Pay taxes or high fees: should I sell underperforming AmCent
Replies: 7
Views: 421

Re: Chase savings account bonus deposit

To the best of my knowledge I have not received any calls but then I use the answering machine as the primary receiver so it is difficult to know for sure. This is just a guess........but I do know that they track your history on previous accounts.......because they told me of some of my prior histo...
by kaneohe
Tue Aug 26, 2014 12:26 am
 
Forum: Personal Consumer Issues
Topic: Chase savings account bonus deposit
Replies: 22
Views: 1953

Re: strategy to get brokerage bonuses

What kind of taxes do you pay on this transfer bonuses? I asked TDAmeritrade a few months ago, and was told that it was not reported if it is less than $600. Even if not reported to you(like bank interest < $10), you are still responsible for reporting and paying taxes on the bonus......I think it'...
by kaneohe
Mon Aug 25, 2014 11:03 am
 
Forum: Personal Finance (Not Investing)
Topic: strategy to get brokerage bonuses
Replies: 54
Views: 3687

Re: using the 15% tax bracket

This is a useful concept if you have little other income so the RMD is taxed at "effective" rates. However if you have significant other income (pensions/SS/interest/div/etc), that other income will swamp the lower brackets and the RMDs would then be taxed at much higher "effective&q...
by kaneohe
Sun Aug 24, 2014 4:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: using the 15% tax bracket
Replies: 42
Views: 4394

Re: using the 15% tax bracket

A key factor in Roth conversions is whether one's tax bracket is higher or lower in retirement. Note also that a large RMD is actually taxed at multiple rates. The first dollars are not taxed at all with additional portions taxed at 10%, 15%, and then any higher rates. . This is a useful concept if...
by kaneohe
Sun Aug 24, 2014 3:29 pm
 
Forum: Personal Finance (Not Investing)
Topic: using the 15% tax bracket
Replies: 42
Views: 4394

Re: Chase Freedom reward changes in 2016

kaneohe wrote: Don't they allow you to take the reward as a statement credit? Isn't that as good as a paper check, maybe better, since you don't have to deal with the check? Probably quirky and old fashioned, but I like to accumulate cash kickbacks and spend it on the grand kids exclusively. If the...
by kaneohe
Sat Aug 23, 2014 8:14 pm
 
Forum: Personal Finance (Not Investing)
Topic: Chase Freedom reward changes in 2016
Replies: 25
Views: 3762

Re: Chase Freedom reward changes in 2016

"the discontinuation of paper checks" No cash back is a deal breaker for me. I need my Nana money. When I was told CHASE would discontinue their rewards check, I put on my things to-do-to list to find another card to supplement my Am Ex (Costco) card. Ideas? Don't they allow you to take t...
by kaneohe
Sat Aug 23, 2014 5:49 pm
 
Forum: Personal Finance (Not Investing)
Topic: Chase Freedom reward changes in 2016
Replies: 25
Views: 3762

Re: 3.85% medicare tax?

no interest?
by kaneohe
Fri Aug 22, 2014 4:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: 3.85% medicare tax?
Replies: 6
Views: 724

Re: Withdrawal of Roth IRA Contributions

You need to file F8606 . see http://www.irs.gov/pub/irs-pdf/f8606.pdf pt III on p. 2. IRS needs to see that you aren't taking earnings which you demonstrate by showing your basis in contributions and your current withdrawals. You also need to read the instructions for certain line items if you have ...
by kaneohe
Mon Aug 18, 2014 6:27 pm
 
Forum: Investing - Help with Personal Investments
Topic: Withdrawal of Roth IRA Contributions
Replies: 11
Views: 2162

Re: Help!! Can some one explain tax loss harvesting

perhaps looking at Sch D might help. http://www.irs.gov/pub/irs-pdf/f1040sd.pdf The form is more complex than it used to be but the idea is the same. Part I reports short term gains/losses . Lines 1-3 report current yr gains/losses. Line 6 is the short term loss carryover from the previous yr. The s...
by kaneohe
Tue Aug 12, 2014 10:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help!! Can some one explain tax loss harvesting
Replies: 16
Views: 1079

Re: New savings account?

I've been w/ Synchrony (GE Retail) for 3-4 months spanning the transition to Synchrony. So far so good. They improved the m.mkt so that the yield structure is flat and not tiered as it used to be so you can keep a smaller balance there (there is a min. balance of ? 1.5K ? to avoid fees) if you want ...
by kaneohe
Fri Aug 08, 2014 10:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: New savings account?
Replies: 5
Views: 669

Re: Question re- EE Bonds

If you were at least 24 years old when you received any of the ones issued after 1989, they qualify for tax free treatment if you use them for qualified education expenses for yourself or for a dependent. http://www.irs.gov/publications/p970/ch10.html from your link: Qualified U.S. savings bonds. A...
by kaneohe
Thu Aug 07, 2014 11:48 pm
 
Forum: Personal Finance (Not Investing)
Topic: Question re- EE Bonds
Replies: 18
Views: 1650

Re: Best way to handle estimated taxes on unequal income?

The estimated tax penalty is 9%, but it is applied on an annualized basis. But if you mean the "prior-year tax liability" safe harbor, it is a cliff. Underpay the safe harbor amount by a few dollars, and your entire balance due is subject to the penalty calculation. From that point on, it...
by kaneohe
Thu Aug 07, 2014 5:38 pm
 
Forum: Personal Finance (Not Investing)
Topic: Best way to handle estimated taxes on unequal income?
Replies: 24
Views: 1418

Re: Best way to handle estimated taxes on unequal income?

It is also worth noting that the safe harbor is very important and very rigid in its application. Missing it by even a few dollars can subject you to the estimated tax penalty if you wind up owing at year-end. It is better to exceed the safe harbor amount, as added insurance against a math error. ....
by kaneohe
Thu Aug 07, 2014 10:55 am
 
Forum: Personal Finance (Not Investing)
Topic: Best way to handle estimated taxes on unequal income?
Replies: 24
Views: 1418

Re: Best way to handle estimated taxes on unequal income?

Would you be able to increase your withholding enough so that in combination with your equal quarterly estimated taxes you meet the safe harbor of
100% of last yrs taxes (110% if AGI > 150K)? http://fairmark.com/estimate/howmuch.htm
by kaneohe
Thu Aug 07, 2014 12:18 am
 
Forum: Personal Finance (Not Investing)
Topic: Best way to handle estimated taxes on unequal income?
Replies: 24
Views: 1418

Re: dividend yield when stock price change

You need to distinguish between fundamental things....like how much the dividend per share is.......and defined/derived quantities like yield which can be whatever you define it as; sometimes some definitions are more meaningful than others. Suppose you live off your dividends and would like to maxi...
by kaneohe
Tue Aug 05, 2014 8:53 pm
 
Forum: Investing - Theory, News & General
Topic: dividend yield when stock price change
Replies: 38
Views: 1355

Re: Investing for those in the 15% tax bracket

Maybe you can help educate me. Let's assume I am in the 15% tax bracket this year. I put in $100 into a Roth IRA and $100 into a traditional IRA this year and buy 1 share in each of Vanguard's Total Stock Market Index Fund. I don't touch the investments for 30 years. After 30 years, I sell the shar...
by kaneohe
Mon Aug 04, 2014 1:13 pm
 
Forum: Investing - Theory, News & General
Topic: Investing for those in the 15% tax bracket
Replies: 38
Views: 2793

Re: Is Medigap insurance really needed?

Let me clarify my question. Will Medigap plan F cover ALL the medical expense(s) left over after medicare pays their part for covered expense(s)? Thanks Yes unless you choose the high deducible plan F. Then you have to pay the deductible first. Here's a chart comparing all the Medigap plan coverage...
by kaneohe
Sun Aug 03, 2014 9:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: Is Medigap insurance really needed?
Replies: 83
Views: 4336

Re: Is Medigap insurance really needed?

I could only find 2 Medigap plans that have a maximum out of pocket limit stated. For all those who chose Plan F (which appears to be the best plan but does not have a limit), is this a concern at all, or am I missing something and should not worry about that? I know MA plans have limits, but I wan...
by kaneohe
Sun Aug 03, 2014 9:52 am
 
Forum: Personal Finance (Not Investing)
Topic: Is Medigap insurance really needed?
Replies: 83
Views: 4336

Re: Confused about HSA

http://www.hsaed.com/who_can_have_an_hsa_

check this out for FSA & HSA . Apparently you can't have a full-featured FSA and an HSA at the same time ; but a limited purpose FSA is ok.
by kaneohe
Fri Aug 01, 2014 6:37 pm
 
Forum: Investing - Help with Personal Investments
Topic: Confused about HSA
Replies: 9
Views: 568

Re: "Backdoor" Roth [tax liability of traditional IRA]

see http://www.irs.gov/pub/irs-pdf/f8606.pdf which is the form which reports Roth conversions in Pt II. See the first line on p.1 which reads: Name. If married, file a separate form for each spouse required to file Form 8606. See instructions. The separate form for each spouse tracks only their indi...
by kaneohe
Fri Aug 01, 2014 12:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: "Backdoor" Roth [tax liability of traditional IRA]
Replies: 6
Views: 479
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